Two local banks get ratings upgrade

Published: Saturday, December 8, 2012 at 1:00 a.m.

Last Modified: Friday, December 7, 2012 at 6:50 p.m.

Two Southwest Florida lenders were upgraded in the latest ratings cycle by analyst BauerFinancial Inc., another sign of the banking industry's slow but steady recovery in the region.

First America Bank of Bradenton and Englewood Bank & Trust each received a bump in Bauer's third-quarter report card, which was released Friday.

The other 10 banks based in Sarasota, Manatee or Charlotte counties retained their grades. Only one area bank now carries a mark considered less than "adequate."

First America and Englewood rose from three stars, or adequate, to three-and-a-half stars, or "good."

Englewood swung to a $546,000 profit in the third quarter, from a year-ago loss of $287,000. It has earned $1.1 million so far this year, up from a loss of $825,000 at this point in 2011.

Bank president Lane Diedrick cited the improving economy as the primarily reason for a strong decline in the bank's non-performing loans and a reduction of its loan-loss provision, which he said remains at a "conservative" 5 percent of outstanding loans.

"The bank has also placed great emphasis in managing overall expenses, resulting in significant savings," Diedrick said. "The overall outcome has been a return to profitability and respectable earnings."

First America earned $84,000 in the latest quarter, up from last year's $723,000 loss. Profits rebounded to $325,000 so far for 2012, compared with a $1.6 million loss at this juncture last year.

The same cannot be said for Sarasota's The Bank of Commerce, which has again received zero stars -- making it the region's only community bank to be saddled with Bauer's lowest grade.

Even it has shown improvement, however,

Bank of Commerce, the area's sole undercapitalized institution, posted a $46,000 loss in the third quarter, better than the $2.5 million loss a year earlier. The bank has earned $456,000 this year, due in part -- as with some other local banks -- to securities sales.

Bauer graded 25 Florida banks and thrifts at zero, down from 31 last quarter. That still represents 12 percent of the state's 213 banks and thrifts, however.

Florida Shores Bank-Southwest, in Venice, and Gateway Bank of Southwest Florida, in Sarasota, were the region's only banks to earn Bauer's top five-star, "superior" grade.

Calusa National Bank of Punta Gorda and Encore National Bank of Port Charlotte kept their ratings of four stars, or "excellent."

C1 Bank of Lakewood Ranch and Charlotte State Bank & Trust, of Port Charlotte, maintained their three-star ratings. C1 has moved its corporate headquarters to St. Petersburg, but it is still chartered in Manatee County.

<p>Two Southwest Florida lenders were upgraded in the latest ratings cycle by analyst BauerFinancial Inc., another sign of the banking industry's slow but steady recovery in the region.</p><p>First America Bank of Bradenton and Englewood Bank & Trust each received a bump in Bauer's third-quarter report card, which was released Friday.</p><p>The other 10 banks based in Sarasota, Manatee or Charlotte counties retained their grades. Only one area bank now carries a mark considered less than "adequate."</p><p>First America and Englewood rose from three stars, or adequate, to three-and-a-half stars, or "good."</p><p>Englewood swung to a $546,000 profit in the third quarter, from a year-ago loss of $287,000. It has earned $1.1 million so far this year, up from a loss of $825,000 at this point in 2011.</p><p>Bank president Lane Diedrick cited the improving economy as the primarily reason for a strong decline in the bank's non-performing loans and a reduction of its loan-loss provision, which he said remains at a "conservative" 5 percent of outstanding loans.</p><p>"The bank has also placed great emphasis in managing overall expenses, resulting in significant savings," Diedrick said. "The overall outcome has been a return to profitability and respectable earnings."</p><p>First America earned $84,000 in the latest quarter, up from last year's $723,000 loss. Profits rebounded to $325,000 so far for 2012, compared with a $1.6 million loss at this juncture last year.</p><p>The same cannot be said for Sarasota's The Bank of Commerce, which has again received zero stars -- making it the region's only community bank to be saddled with Bauer's lowest grade.</p><p>Even it has shown improvement, however,</p><p>Bank of Commerce, the area's sole undercapitalized institution, posted a $46,000 loss in the third quarter, better than the $2.5 million loss a year earlier. The bank has earned $456,000 this year, due in part -- as with some other local banks -- to securities sales.</p><p>Bauer graded 25 Florida banks and thrifts at zero, down from 31 last quarter. That still represents 12 percent of the state's 213 banks and thrifts, however.</p><p>Florida Shores Bank-Southwest, in Venice, and Gateway Bank of Southwest Florida, in Sarasota, were the region's only banks to earn Bauer's top five-star, "superior" grade.</p><p>Calusa National Bank of Punta Gorda and Encore National Bank of Port Charlotte kept their ratings of four stars, or "excellent."</p><p>1st Manatee Bank of Parrish, Insignia Bank of Sarasota and Sabal Palm Bank of Sarasota held steady, too, at three-and-a-half stars.</p><p>C1 Bank of Lakewood Ranch and Charlotte State Bank & Trust, of Port Charlotte, maintained their three-star ratings. C1 has moved its corporate headquarters to St. Petersburg, but it is still chartered in Manatee County.</p>